The state of Kentucky is sinking $5 million into a program to loan up to 1,111 first-time home buyers up to $4,500 each at very favorable terms, Gov. Steve Beshear announced today via press release. This comes in addition to the $8,000 federal tax credit created in the federal “stimulus” bill.
My question: if giving home purchasers $8,000 is good and subsidizing them with $12,500 is better, why should we stop there? Is this enough for taxpayers to contribute to home purchasers? Is it too much? How would we know?